Sponsor by Innity

Sponsor by cwyeoh

Sponsor by Nuffnang

Monday, December 10, 2012

KELINGTON GROUP BERHAD, formerly Kelington Engineering Sdn Bhd, is engaged principally in the business of providing engineering services and general trading services specifically in the provision of ultra-high purity (UHP) gas and chemical delivery system solutions. It comprises products and services, such as system design and installation, gas and chemical delivery equipment, control and instrumentation, quality assurance (OA) and quality control (OC), and maintenance and servicing to various foundries (semiconductor/FPD), as well as clients who require UHP gas or chemical delivery systems in Malaysia, the People’s Republic of China, Taiwan and Singapore. The Company’s subsidiaries include Kelington Technologies Sdn Bhd (KTSB), Kelington Engineering (Shanghai) Co., Ltd (KE Shanghai), Kelington Engineering (S) Pte Ltd (KE Singapore) and Kelington Trading (Shanghai) Co., Ltd (KTS).

Revenue increased 9.7% but lower than preceding year corresponding quarter 30.8%, eps decreased 42.5% and also lower than preceding year corresponding quarter 37.8%, negative net cash from operating hence increased borrowings and spent 37.3% of Group cash to cover all other expenses, current assets improved which may increase revenue in near future, gross margin improving from around 15% to 21%, liquidity ratio indicate heavily depend on receivables to meet current obligation, gearing ratio indicate increase liabilities risk to cover receivables, receivables turnover period still long term which hold out the cash, Malaysia and China business still high profit

First Support Price

0.565

Second Support Price

0.53

Risk Rating

MODERATE

Research House

OSK Target Price

0.75 (2012-06-28)

Kenanga Target Price

0.53 (2012-09-13)

Accounting Ratio

Return on Equity

15.52%

Dividend Yield

3.48%

Gross Profit Margin

21.04%

Operating Profit Margin

7.64%

Net Profit Margin

7.35%

Tax Rate

21.17%

Asset Turnover

1.335

Net Asset Value Per Share

0.54

Net Tangible Asset per share

0.49

Price/Net Tangible Asset Per Share

1.15

Cash Per Share

0.13

Liquidity Current Ratio

1.9572

Liquidity Quick Ratio

1.9023

Liquidity Cash Ratio

0.4062

Gearing Debt to Equity Ratio

0.7797

Gearing Debt to Asset Ratio

0.4381

Working capital per thousand Ringgit sale

30.3%

Days to sell the inventory

8

Days to collect the receivables

171

Days to pay the payables

91

Technical Analysis

SMA 10

0.57 (Same)

SMA 20

0.574 (Uptrend 6 days)

SMA 50

0.566 (Uptrend)

SMA 100

0.585 (Same)

SMA 200

0.414 (Uptrend)

MACD (26d/12d)

0.000175 ( 0.000283 )

Signal (9)

0.000549 ( 9.3e-005 )

MACD Histogram

0.000374 (Bearish trend 27 days)

Bolinger Upper Band

0.582

Bolinger Lower Band

0.566

My notes based on 2012 quarter 3 report (number in '000):-
- Higher revenue from Malaysia operation due to contribution from the Malaysian subsidiary of a company acquired during the year

- Revenue from China, Taiwan and Singapore operations decreased due to the timing difference of projects that have been completed and commencement of new projects that are still in the preliminary stages

- In Taiwan, the decrease in revenue was due to one key base build project for a touch screen panel application, that was undertaken in the previous year’s corresponding quarter and is almost completed in the current quarter